Who said we were going bust? We will not surrender to to international giants Siba’s CEO Fabian BengtssonTuesday, 17 January 2012
The talks that the Swedish electronic retailer, Siba, was under enormous competition pressure from others and could go under seem to have been a dream and not something that could happen soon or ever.
This because Siba's CEO Fabian Bengtsson has reacted to media reports that his company could fall by saying that they are fine and that the rumour that the company would be the next victim of the electronic war was a fallacy. The spirit in the company is that it will not give way for the international giants so easily, argues the CEO.
The Swedish electronics giant Siba, owned by the Bengtsson family in Gothenburg, was reported yesterday to be under enormous squeezed by tougher competition from German backed Media Markt and British rooted Elgiganten. News circulating in the sector now in Sweden is that the company is threatened with closure, according t the Swedish tabloid newspaper, Expressen reporting on Monday.
But that supposed insinuation has been countered by Siba’s CEO Fabian Bengtsson.
"There is no substance in the allegation. We have seen increase sales, improve profitability and are on track, "he said and points out that sales in December and January have increased by 10 percent and 17 percent over the previous year.
In addition, there was a profit of Skr10 million in the latest annual report, he points out. But the losses still landed on the burning Skr72 million in the last annual report, which runs until August 2011.
The last three years add up the loss after tax of Skr 196 million, according to Siba's annual reports.
Equity has more than halved to sKR218 million in the last four years.
"If you have negative growth in cash flow that will affect the equity. There is nothing strange about it. But we have saved money in this company for 50 years and has an incredible strong financial position regardless of the loss trend that has been raging," said Fabian Bengtsson and indicates that the Bengtsson family through their company has an equity in excess of Skr1.5 billion .
AdvertisementDespite Siba large losses, the boss is still not seeing it as a problem. "We have a very strong financial position. There are very few companies that have 57 percent equity in the current situation, "said Fabian Bengtsson and refers to the closing of one of the companies in the Siba Group, which has not yet been submitted to the Companies Registration Office.
Loss Development in Siba is also small relative to other players, according to Fabian Bengtsson, pointing in particular to Elgiganten which reported an operating loss of Skr 304 million in the latest annual report.
"There are international players who have come to Sweden to lose billions of Krona to shoot holes in a number of Swedish actors to create an oligopoly. We will continue our fight against them, "said Fabian Bengtsson and continues:
"International players have in recent years pulled out of countries due to poor profitability. With the loss development that is now in Sweden, we can not rule out that they do it here too."
He would there not want to speculate a situation whereby Siba remains in Sweden while one of the two giants Media Markt or Elgiganten fall and could leave Sweden.
It has been recently speculated how long Siba can win the fight against the international giants, Media Markt and Elgiganten.
Fabian Bengtsson would not speculate on when the company can turn in a profit.
Despite losses in Siba there is no distress in the Bengtsson family. Their separate companies Waldir, which has an activity in the company Resurs Bank, reported a 2010 net profit of Skr107 million.
By Scancomark.se Team
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